On March 25, 2026, the Ontario government announced the biggest housing affordability measure in years: a temporary expansion of the HST rebate that removes the full 13% tax on newly built homes. For a buyer purchasing a $1 million new build, that's up to $130,000 back in your pocket.
This isn't a rumour or a campaign promise. It's a signed agreement between the Ontario and federal governments, taking effect April 1, 2026. Below is everything you need — no fluff, just facts sourced directly from the official Ontario announcement.
Quick Facts at a Glance
$130,000
Full 13% HST
April 1, 2026
March 31, 2027
No — all buyers
No — new builds only
How the Rebate Works: Tier-by-Tier Breakdown
The rebate amount depends on the purchase price of your new home. Here's the structure announced by the Ontario government:
| Home Price | HST Rebate | What You Save |
|---|---|---|
| Up to $1,000,000 | Full 13% HST removed | Up to $130,000 |
| $1,000,001 – $1,500,000 | Maximum $130,000 maintained | $130,000 |
| $1,500,001 – $1,850,000 | Proportional decrease | $130,000 → $24,000 |
| Above $1,850,000 | Federal portion only | Up to $24,000 |
Important: "Pre-Tax" Price
The price tiers above refer to the pre-tax purchase price of the home. HST is calculated on top of this amount. For a $900,000 home the HST would normally be $117,000 — and that's the amount you'd get back.
Real-Dollar Example: Buying a $750K New Build in Toronto
Let's say you're buying a new-construction condo in the GTA listed at $750,000 (pre-tax). Here's how the math changes:
That $73,500 could cover your entire down payment on a second property, furnish your new home, or stay invested. On a $1M home, you save the full $130,000.
Who Qualifies? Eligibility Checklist
The eligibility rules are more generous than most people expect. Here's the official criteria from the Ontario government announcement:
You Qualify If...
- You're buying a newly built home (house, condo, townhouse)
- Purchase agreement signed between April 1, 2026 and March 31, 2027
- Home will be your primary residence OR a residential rental property
- Construction begins by December 31, 2028
- Construction is completed by December 31, 2031
- You're a first-time OR repeat buyer
You Don't Qualify If...
- You're buying a resale (previously occupied) home
- Purchase agreement signed before April 1, 2026
- Purchase agreement signed after March 31, 2027
- The property is strictly commercial or industrial
- Construction doesn't begin by end of 2028
- Home won't be completed by end of 2031
Rental investors take note: You can purchase a new-build property for the purpose of renting it out and still qualify for the full rebate. This is a departure from previous versions of the rebate that were more restrictive.
Key Dates You Need to Know
March 25, 2026
Ontario announces expanded HST rebate in partnership with the federal government
April 1, 2026
Rebate window opens — purchase agreements signed on or after this date qualify
March 31, 2027
Rebate window closes — last day to sign a qualifying purchase agreement
December 31, 2028
Deadline for construction to begin on qualifying properties
December 31, 2031
Deadline for construction to be completed
Stack It: Combine the HST Rebate with Other Programs
The HST rebate doesn't exist in a vacuum. If you're a first-time buyer, you can layer it on top of multiple federal and provincial programs. We've written a complete guide to Ontario first-time buyer incentives — here's the headline version:
| Program | Benefit | Who Qualifies | Source |
|---|---|---|---|
| Expanded HST Rebate | Up to $130,000 | All new-home buyers | ontario.ca |
| First Home Savings Account (FHSA) | Up to $40,000 tax-free | First-time buyers | canada.ca |
| Home Buyers' Plan (HBP) | Up to $60,000 from RRSP | First-time buyers | canada.ca |
| Home Buyers' Tax Credit (HBTC) | $1,500 tax credit | First-time buyers | canada.ca |
| Ontario Land Transfer Tax Rebate | Up to $4,000 | First-time buyers | ontario.ca |
| Toronto Municipal LTT Rebate | Up to $4,475 | First-time buyers in Toronto | toronto.ca |
Combined potential for a first-time buyer purchasing a $750K new build in Toronto:
Up to $207,475 in savings and incentives
HST rebate ($97,500) + FHSA ($40,000) + HBP ($60,000) + HBTC ($1,500) + Provincial LTT ($4,000) + Toronto MLTT ($4,475)
Who Should Act on This — and Who Should Wait
Consider Acting Now If...
- You were already shopping for a new build or pre-construction condo
- You're renting and ready to buy — this changes the math significantly
- You want to invest in a rental property (new builds now qualify)
- You're comparing new vs. resale and needed a tiebreaker
You Might Wait If...
- You're not financially ready — a rebate doesn't fix affordability issues
- You're set on a resale home (this rebate doesn't apply to you)
- You're buying above $1.85M (limited benefit at that price point)
- You need to move in within 12 months (new builds take longer)
How to Claim the Rebate
Sign your purchase agreement during the window
The agreement must be signed between April 1, 2026 and March 31, 2027. Keep all documentation.
Your builder may credit the rebate at closing
Most builders in Ontario will apply the HST rebate directly, meaning you never pay the HST upfront. This has been standard practice for the existing (smaller) rebate.
If not credited at closing, file with CRA
You can file the GST/HST New Housing Rebate application (Form GST190) with the Canada Revenue Agency after closing. Visit canada.ca for the form.
Confirm construction timelines
Ensure your builder can begin construction by December 31, 2028 and complete by December 31, 2031 to maintain eligibility.
Context: What the Old Rebate Looked Like
Before this expansion, the HST new housing rebate was capped at around $24,000 and only available on homes under $450,000 (for the full federal rebate) and $400,000 (for the full Ontario portion). That meant most GTA buyers — where the average new-build price exceeds $800,000 — got very little back.
The new structure eliminates the full 13% HST on homes up to $1 million and maintains generous relief up to $1.85 million. The federal government is covering its 5% share, with Ontario covering the 8% provincial portion. Total estimated relief: $2.2 billion.
Related Reading on HouseIndex
First-Time Home Buyer Incentives in Ontario (2026)
Full breakdown of every federal and provincial program available to first-time buyers.
First-Time Home Buyer Guide: Toronto 2026
Step-by-step walkthrough from saving your down payment to getting the keys.
How Much House Can You Afford in Toronto?
A realistic look at what your income and savings actually buy in the GTA.
Rent vs. Buy in Toronto: Calculator + Analysis
Run the numbers on renting vs. buying in today's market.
Need Help Understanding the Rebate?
Our team can walk you through how the expanded HST rebate applies to your situation — whether you're buying your first home or investing in a new build. Reach out anytime.
Frequently Asked Questions
How much is the Ontario HST rebate on new homes in 2026?
For new homes priced up to $1 million, the full 13% HST is removed — saving buyers up to $130,000. Between $1M and $1.5M the maximum stays at $130,000. From $1.5M to $1.85M the rebate decreases proportionally from $130,000 to $24,000. Above $1.85M the maximum is $24,000.
When does the expanded Ontario HST rebate start and end?
The rebate applies to purchase agreements signed between April 1, 2026 and March 31, 2027. Construction must begin by December 31, 2028 and be completed by December 31, 2031.
Do I have to be a first-time buyer to qualify?
No. The expanded HST rebate is available to all buyers — first-time and repeat — as long as the home is used as a primary residence or a residential rental property.
Can I combine the HST rebate with other incentives?
Yes. You can stack it with the First Home Savings Account (FHSA), the Home Buyers' Plan (HBP), the Home Buyers' Tax Credit, and provincial/municipal land transfer tax rebates. A first-time buyer purchasing a $750K new build in Toronto could access over $200,000 in combined benefits.
Does the rebate apply to resale homes?
No. Resale homes are not subject to HST and therefore do not qualify. The expanded rebate only applies to newly constructed homes, including pre-construction condos and custom builds.
How does the federal government participate?
The federal government covers its 5% portion of the HST, while Ontario covers its 8% portion. Together this removes the full 13% HST. The total estimated relief is approximately $2.2 billion.
Bottom Line
This is the single largest housing incentive Ontario has introduced in years. If you're buying a new build between April 2026 and March 2027, you could save up to $130,000 on HST alone — and significantly more when you stack other programs. The window is 12 months. The math is clear.
Official Sources
All information in this article is sourced from Canadian government publications: